Gold Edges Lower Over a Stronger Dollar

A strengthening dollar and US Treasury yields have pushed GOLD prices lower early on Wednesday morning. At the time of writing, gold is trading above $1,392.

The dollar has gained over the past few days after the US labor report posted a strong growth in jobs during June. This has dampened the likelihood of a rate cut by the Fed in its July meeting. Expectations of a 0.5% rate cut have diminished to nearly nil, although there is still a chance of a 0.25% rate cut being announced.

Another factor weighing on gold’s safe haven appeal lately has been the trade dispute between US and China. On Tuesday, both sides officially resumed their negotiations once again through phone discussions. As a result, there could be an improvement in the trade war sentiment in the coming days as markets hope for US and China to work out a trade deal between them.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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